Entrepreneurship

Analysis of McDonald's SWOT

Strengths, Weaknesses, Opportunities, and Threats

Jay-ame L. Guiling BTVTEd 1-2 DT

Strenghts

Strong and Strategic Marketing through Celebrity Endorsements

McDonald's boosts its reach by using celebrity endorsements to attract diverse audiences and build brand trust.

In the Philippines, McDonald's leverages well-known personalities like Vice Ganda to build trust and appeal to a broad
audience. Vice Ganda, along with the popular group SB19, serves as a face of the brand. With the growing popularity of P-Pop,
especially SB19, this is a smart move to connect with Filipino fans. McDonald's also partnered with global icons like BTS,
introducing the widely successful "BTS Meal." By using celebrities in their marketing campaigns, McDonald's effectively
broadens its market reach.

Appealing Price and Comfortable Place

McDonald's offers affordable prices and a comfortable dining environment, making it an accessible and pleasant choice for
customers.

As a student, McDonald’s offers very affordable and reasonable pricing, especially considering the value of the dining
experience. Their most budget-friendly option right now is the "Mix and Match Savers" for only 89 pesos, allowing you to
choose a main item, a side, and a dessert. For example, you might get a chicken fillet with rice and a sundae, with other
combinations available based on your preferences. McDonald’s locations are typically air-conditioned, making them a great
choice for escaping the heat. With their comfortable and cool environment, McDonald’s is an ideal spot for students for
perfect "tambayan". Additionally, their menu features many affordable items that are perfect for group meals, making it an
appealing option for families and friends.

Delivers to your Home and is Widely Available Everywhere

McDonald’s offers the convenience of home delivery and has numerous locations, ensuring easy access and availability almost
anywhere.

McDonald's offers convenient delivery from nearby locations, making it easy to enjoy their food. Many delivery apps support
McDonald's, ensuring daily service to areas close to you. Additionally, McDonald's locations are generally easy to access; for
example, in my area, you can find a branch within just 2 km, demonstrating their widespread presence and accessibility across
the country.

Strengths
Weaknesses

Lack of Healthy Food Options

McDonald's offers limited choices for healthier meals, which can deter health-conscious customers looking for nutritious
options.

McDonald's menu primarily features unhealthy options, such as fried chicken and sugary drinks, which are high in cholesterol,
sodium, and calories. The lack of healthier food choices means customers may face health risks. A 2015 study highlighted the
severe effects of consuming fast food, including obesity, insulin resistance, type 2 diabetes, and cardiovascular issues. Fast
food is typically high in sugar, salt, saturated fats, trans fats, and processed ingredients, while being low in essential nutrients
like antioxidants and fiber. This demonstrates the potential health drawbacks of eating at McDonald’s.

Bad Environment for Workers

McDonald's has been criticized for stressful and demanding work conditions, toxicness, leading to high employee turnover and
low job satisfaction.

Having a bad environment can affect workers mental health which can lead to stress and burnout. In my experience, one of my
friend as a worker there said it was really toxic Fast-paced, high-pressure conditions, long hours, and demanding customers
can lead to stress and burnout. This can result in low employee morale, high turnover rates, and inconsistent service quality,
which affects both workers and customers.

Franchise Autonomy
Franchise autonomy allows McDonald's franchise owners to make local decisions, but if a franchise takes a controversial
action, it can still harm McDonald's reputation, even if the corporate brand did not endorse the decision.

One recent issue McDonald's faced was when a franchise gave free meals to Israeli forces, which many people viewed
negatively. This led to calls on social media to boycott McDonald’s for supporting Israel. While McDonald's corporate stated
that this was a decision made by the individual franchise, not the entire brand, the incident still caused widespread negative
publicity, impacting the company’s image.

Weaknesses
Oppurtunities

Expand Healthier Menu Options

Introducing more nutritious and balanced menu items, like salads, fruit, and whole-grain options, to attract health-conscious
customers.

Adding more healthy choices to the menu, like salads, fruit, and whole-grain items, can attract customers who are looking for
nutritious food. This change would help McDonald's reach people who avoid fast food because of health reasons. Offering
these options can also improve McDonald's image as a company that cares about its customers' health, leading to more sales
and happier customers.

Adapt to Local Tastes

Customizing menus to fit regional preferences and cultural tastes, improving acceptance and customer satisfaction in diverse
markets.

Adjusting the menu to include local flavors and dishes can make McDonald’s more appealing to people in different areas. For
example, as a Filipino, I’d love to see more Filipino-inspired meals. This can make customers feel more at home and satisfied, as
they can enjoy food that matches their local tastes. It can also attract more people who want to try familiar or culturally
relevant options, helping McDonald's do better in different places.

Invest in Sustainable Practices

Adopting eco-friendly packaging and reducing waste to appeal to environmentally conscious consumers and improve brand
image.

By using eco-friendly packaging and cutting down on waste, McDonald's can attract customers who care about the
environment. This means choosing materials that are better for the planet and finding ways to reduce the amount of trash the
company creates. This approach not only helps the environment but also improves McDonald's image, showing that the
company is responsible and cares about making a positive impact.

Oppurtunities
Threats

Competition from Emerging and Existing Brands

The fast-food industry is highly competitive, with new brands and emerging concepts challenging McDonald's market share.

The fast-food industry is very competitive, with new and emerging brands constantly trying to capture market share from
established companies like McDonald's. For instance, Jollibee Food Corporation is expanding rapidly and has recently
introduced Jollibrews, which offers coffee and a variety of pastries. While McDonald’s already has McCafé, this type of new
innovation from other companies, or even new brands, can pose a threat. These innovations attract customers who are looking
for different dining experiences, which can challenge McDonald's position in the market and impact its sales.

Social Media Backlash

Negative social media campaigns or viral challenges targeting McDonald's can damage its brand reputation and lead to
boycotts or decreased customer loyalty.

Negative social media campaigns or viral challenges against McDonald's can hurt its brand reputation and lead to boycotts or
reduced customer loyalty. For example, a recent issue with a franchise giving free meals to Israeli forces sparked backlash on
social media, leading to calls to boycott McDonald’s. Such incidents can quickly spread online, damaging the brand’s image
and causing many customers to turn away, which impacts sales and overall customer trust.

Currency Fluctuations
Fluctuations in exchange rates can impact McDonald's revenue and profitability, especially in international markets.

Changes in exchange rates can affect McDonald's revenue and profits, especially in international markets like here in the
Philippines. If the Philippine peso weakens against the U.S. dollar, the money McDonald's earns from sales in the Philippines
will be worth less when converted back into dollars. This can reduce overall profits. On the other hand, if the peso strengthens,
it might increase costs for McDonald's in the Philippines. These fluctuations can complicate financial planning and impact
McDonald's profitability in the region.

Threats
Recomendation and Implications
To enhance McDonald's market position and address key issues, several strategies can be implemented. Expanding healthier
menu options, such as adding salads and fruit, will attract health-conscious customers and improve the brand’s image.
Adapting the menu to local tastes, like offering Filipino-inspired dishes in the Philippines, can boost customer satisfaction and
loyalty. Investing in sustainable practices, including eco-friendly packaging and waste reduction, will appeal to
environmentally conscious consumers and strengthen McDonald's brand reputation.

Addressing weaknesses involves improving employee working conditions to reduce stress and turnover, which can enhance
service quality and overall customer experience. Implementing stricter guidelines for franchise autonomy will help prevent
controversial actions from harming the brand's image.

To counter threats, McDonald's should stay ahead of industry trends and innovate to remain competitive against emerging
brands. Strengthening social media monitoring and response strategies can help manage backlash and maintain customer
trust. Additionally, using financial strategies can mitigate the impact of currency fluctuations on revenue and profitability.
These actions will help McDonald's navigate its challenges and leverage opportunities for growth.

Recomendation
Rubrics

Needs Total
Excellent Good Fair
Criteria Improvement Point
(4 points) (3 points) (2 points)
(1 point) s

Identifies and
Clearly identifies and Identifies some Poorly identifies
Understandi explains most
thoroughly explains components but or explains
ng of SWOT components /4
Strengths, Weaknesses, with limited SWOT
Components with some
Opportunities, and Threats. explanation. components.
detail.
Provides a good Analysis lacks
Provides a deep and Analysis is basic
analysis with depth and
Depth of insightful analysis with with minimal
some relevant evidence, with /4
Analysis relevant evidence and evidence and
evidence and few or no
examples examples.
examples. examples.
Most points are Some points are Many points are
Relevance All points are relevant and
relevant and accurate irrelevant or irrelevant or
and accurate with no factual /4
with inaccurate with inaccurate with
Accuracy errors.
few factual errors. several errors. numerous errors.
Analysis is generally Analysis is somewhat Analysis is
Clarity and Analysis is well-organized,
organized and clear disorganized or disorganized and /4
Organization clear, and easy to follow.
with minor issues. unclear at times. difficult to follow.

Provides insightful Provides useful Recommendations

Provides basic
Practical recommendations and recommendations and and implications
recommendations and /4
Implications implications based on the implications with some are
implications.
SWOT analysis. detail. unclear or missing.

Total Score: /20